Biotech Values

[AlpineBV_Miller]

If you were shorted DNDN at noon the day before the 2007 panel, you were underwater by 30-something percent by the time I was done talking on CNBC that afternoon. By the time the market opened two days later, your $3 short turned into a $19 cover.

IF your broker was inept or particularly kind, you might have been able to hold on a little while and cover in the $12-13 range -- but even professional investors were not extended that courtesy. The huge $19/share premarket block was a broker forcibly buying in a hedge fund position and putting that fund out of business before the opening bell.

Now DNDN in 2007 was an aberration because of the options market forces at the time. That was not the mother of all short squeezes strictly from the equity side but more a function of the short stock, short calls trade one particular hedge fund had convinced everyone was the "right" play.